Some Wall Street banks see four U.S. interest rate hikes this year
The U.S. Federal Reserve will hike interest rates four times this year and begin the runoff process for its balance sheet as soon as July, Goldman Sachs economists said.
Goldman Sachs expects the Federal Reserve to raise interest rates four times this year and begin the process of reducing its balance sheet size as soon as July, joining other big banks in forecasting an aggressive tightening of U.S. monetary policy.
The Wall Street bank earlier predicted the Fed would raise rates in March, June and September, but now expects another hike in December.
Goldman Sachs’ predicted rate is only modestly above market expectations for 2022, “but the gap grows significantly in subsequent years,” chief economist published on Sunday.
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